Section 75 of the Consumer Credit Act 1974 sets out the potential liability of creditors for breaches by suppliers in debtor-creditor-supplier agreements, so that credit card companies must take responsibility if a supplier cannot satisfy a consumer’s purchase. To fall within section 75, there has to be an agreement to finance a transaction between a debtor and a third party supplier and there must be existing arrangements between the creditor and the supplier.
If a credit card is used to pay through a third party intermediary service, the conditions in section 75 may not be met. This is the case where the supplier has an arrangement with the intermediary but has no arrangement or contact with the creditor. This aims to strike the right balance between consumer protections and proportionate burdens on business.